Macroeconomic impact studies are commissioned by corporations, industry associations and government entities to understand and communicate their broader contribution to the economy. They serve strategic purposes.
Macroeconomic impact studies serve strategic purposes: supporting public relations and stakeholder engagement, informing regulatory and policy discussions, and providing the evidence base for investment decisions and funding applications.
At the core of this work is the quantification of direct, indirect and induced economic effects. Direct effects capture the immediate economic activity generated by an organisation’s operations. Indirect effects reflect broader supply chain activity. Induced effects account for additional economic activity from household spending by those employed directly or indirectly. Together, these are expressed as contributions to GDP, employment, tax revenues and household income.
StratEcon quantifies macroeconomic impacts using input-output multipliers derived from the latest Social Accounting Matrices (SAMs) specific to the country or region under analysis. SAMs capture the flow of all economic transactions within the economy and provide a robust foundation for multiplier-based analysis. Client expenditure is categorised across relevant sectors and appropriate multipliers are applied to estimate total economic impact.
For larger and more complex questions, particularly where a proposed intervention is sufficiently large to shift economy-wide prices, wages or resource allocation, StratEcon develops dynamic CGE models. These capture the full economy-wide consequences of a policy or investment decision, including second-round effects that simpler models miss. Our CGE model for the Namibia Electricity Control Board has been updated and used for over a decade and a half.
For clients who require ongoing economic tracking of their contribution, StratEcon provides contribution assessments on a regular basis: annual, semi-annual or quarterly. These provide a consistent evidence-base for reporting, stakeholder communication and strategic decision-making over time.
Our macroeconomic analysis work include:
Macroeconomic impact analysis is only as credible as the methodology behind it. StratEcon’s work is grounded in current, country-specific Social Accounting Matrices, applied consistently and transparently. Our outputs are designed to be both analytically rigorous and accessible, presented in formats that work for technical reviewers, board-level stakeholders and public audiences alike.
StratEcon works with major corporations, industry associations, government entities and development institutions on macroeconomic contribution and impact analysis across South Africa and Africa. Contact us to arrange a no-obligation introductory discussion.